Create an account and get free access to 50+ articles.
Sign up for free >>
BootCamp Articles

Articles read: 0/52

Revenue growth is one of the most popular strategy cases in a case interview

Usually, growth strategy cases are introduced by open-ended questions such as “A firm XYZ wants to increase their revenue. How should they go about it?”

Gather the necessary information about volume and price to determine the best growth lever

Case interviews with revenue growth cases can be tackled by influencing two major parameters that determine growth figures. These are volume and unit price. In order to make suggestions, once again, you need to understand the client’s business and the industry. Growth strategies can focus on a product, a division, or on the company as a whole. Areas you could investigate based on your hypothesis are:

Products

  • What is the client’s product mix? What is the lifecyle of each product?
  • What is the state of the respective industries? Are they growing?
  • Which product segments have the biggest potential?
  • What drives customer satisfaction?
  • How does the client’s sales growth rate compare to that of the competitors in the market?

Price

  • How are the client’s prices compared to that of competitors? For instance, if the product is a commodity, then prices should be similar.
  • What is the customers’ price sensitivity? If the product is a commodity, then customers are likely to be very price sensitive.

Marketing

  • What are the client’s marketing and sales channel activities? Evaluate their effectiveness.
  • What are competitors’ marketing and sales channel activities? Evaluate the effectiveness if they are better than the clients’ sales.

Financials

Choose a growth strategy and the growth vector you want to pursue

After having gathered this set of information, you will have got a feeling for the type of growth that is demanded. Based on this information, you can then decide which growth strategy to implement. Roughly, you can subdivide strategies into (1) organic growth and (2) inorganic growth. The categories can further be organized using an Ansoff matrix.

Find new customers by (Ansoff Matrix):

  • Increase/switch distribution channels.
  • Expand the product lines.
  • Enter new markets.
  • Perform a major marketing campaign.
  • Increase your share of wallet with your existing customers e.g. by selling them add-on/bundled products.
  • Lower customer churn rate by preventing unwanted customer attrition.
  • Acquire other companies.

If you have thoroughly completed this BootCamp, you will notice that many case types overlap with each other. You will rarely find a case that fits only one type. Most of the strategic decisions intersect. After completing the BootCamp, you should get a feeling for those connections and be able to see the big picture.

Check out Ocean´s pearl to practice a growth strategy case

Do you have questions on this lesson? Pose it to our community!

Ask a question
Related case(s)

Bain case: Asian lubricants producer

Solved 101.3k times
4.7 5 27403
| Rating: (4.7 / 5.0)

LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). ... Open whole case

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

EY-Parthenon Case: Virtual Marketplace

Solved 22.3k times
4.4 5 648
| Rating: (4.4 / 5.0)

A leading online real estate marketplace in Germany – your-new-home.com – is struggling with stagnating sales after many years of high growth rates. In a preliminary project with EY-Parthenon, the market environment has already been examined in detail – competitors, new entrants, customer needs, etc ... Open whole case

A car park and parking lot operator pursues the strategic goal of exploiting new sources of income via digital business models. As part of this initiative, a MVP (Minimal Viable Product) was developed for a parking app that enables users to search and pay for paid parking spaces. The managing direc ... Open whole case

Well Being health care

Solved 29.2k times
4.3 5 1866
| Rating: (4.3 / 5.0) |

Your client is Well Being (WB), a private healthcare company based in Germany. Well Being operates 10 hospitals in Germany (in comparison to 1,000 public hospitals). These hospitals are normally half the size of the public ones and are not providing Accident and Emergency (ER). Revenue comes fro ... Open whole case